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Tethys assets
2
Sweden
- Gotland strre
- Gotland mindre
France
- Attila
- Permis du Bassin DAls
Oman
- Block 3 & 4
- Block 15
Lithuania
- Gargzdai
- Rietavas- Raiseiniai
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Tethys Oil - An expanding oil & gas company
FDP Block 3 & 4approved
Company isfounded
IPO on First
North on 6 April
2004
Interest in Block 3
& 4 in Oman
acquired
Strategic
investment in
Lithuania
agreement with
Odin Energi
2001 2004 2007 2012
Invests in areas with known oil and gas accumulations and extract upside
potential through the use of modern technologies
Strategic assets with long term potential
Recently awarded 30 year production license in Oman
Chevron entered as partner in Lithuanian license in Q4
Positive cash flow from production in Oman and Lithuania
Significant production growth through ramp-up in Oman through 2012
Market cap ~ SEK 2 billion
Production
record of 14981 bopd in
Oman
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Asset overview
ProductionExploration
Country Licence
name
Total
area
Tethys
interest
Partners Production
Oman Block 3 & 4 33 125km2
30% CCED, Mitsui > 3 500 bopd
Oman Block 15 1 389 km2 40% Odin Energi
Lithuania Rietavas 1 594 km2 14% Odin Energi,
private investors,
Chevron
Lithuania Raiseiniai 1 535 km2 20% Odin Energi,private investors
Lithuania Gargzdai 884 km2 25% Odin Energi,
Geonafta
> 140 bopd
France Attila 1 986 km2 40% Galli Coz
France Als 215 km2 37,5% Mouvoil
Sweden Gotland
strre/mindre
581 km2 100%
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Three blocks: 3 & 4 and 15
Tethys is one of the largest license
holders in Oman, measured byacreage
Two main projects:
Farha South Conventional oil(Block 3)
Saiwan East Conventional oil(Block 4)
Other projects:
Saiwan East Heavy oil (Block 4)
Jebel Aswad Gas/Condensate
(Block 15)
3
4
15
OmanTethys core area
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Oman Block 3 & 4 The primary assets
Tethys 30%, CCED 50% (operator)and Mitsui 20%
Significant light oil resource base Net 2C resources of 13.8 mmbo
Large upside potential inexploration and increasedrecovery
Gross production of 14,734 bopd(Tethys share 3 677 bopd) in Dec2012
Producing areasLeads outside ofproducing areas
Huwayr Deep`
Abu Zeinah
Deep
North Saiwan
Saih Hajmah
Farha South
East Saiwan
Al Saad
Qulam North
Maeen -
Qarn Sahmah
Flank
Huwayr Deep`
Abu Zeinah
Deep
North Saiwan
Saih Hajmah
Farha South
Saiwan East
Al Saad
Qulam North
Maeen -
Qarn SahmahFlank
Resources
Resources
Jan 2012
(mmbo)
Resources
Jun 2012
(mmbo)
Production
Jan-Jun
2012
(mmbo)
Increase
(%)
1C 2.6 3.4 0.6 31
2C 9.8 13.8 0.6 41
*Calculated for first six months of 2012Mmbo = million barrels
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Farha Trend Growth
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Oman production
Produced volume, bbl* Daily production, bopd
8
659 720
948 2701 006 937
1 196 560
1 334 412
197 916284 481 302 081
358 968400 325
0
100 000
200 000
300 000
400 000500 000
600 000
700 000
800 000
900 000
1 000 000
1 100 000
1 200 000
1 300 000
1 400 0001 500 000
Q4-2011 Q1-2012 Q2-2012 Q3-2012 Q4-2012
Gross production Tethys, net production
Increasing oil production from Block 3 and 4
Steady total production in excess of 10.000 bopd
*bbl = barel (1barel =159 litres) **bopd = barels of oil per day
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
Total production, BOPD Tethys Net production, BOPD
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Tethys Oils daily and monthly Production
9
0
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
4 500
5 000
0
20 000
40 000
60 000
80 000
100 000
120 000
140 000
160 000
Tethys Daily v Monthly Production
Production per Month (From Tethys Official Production Press release) Average Daily Tethys Production
Barrels
of oil
Barrels
of oil
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Resources
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Contingent Resources (Audited)
Blocks 3 and 4, OmanMmbo
1C 2C 3C
As per 31 Dec, 2011 2,6 9.8 12.4
Production 1 Jan 30 Jun 2012 -0.6 -0.6 -0.6
Revisions 1.4 4.6 5.5
As per 30 Jun, 2012 3.4 13.8 17.4
Increase 31% 41% 40%
41% increase in 2C resources to 13.8 mmbo compared to December 31, 2011
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Oman - Drilling program uppdateras
Total wells drilled Type of wells
11
4
22
37
0
5
10
15
20
25
30
35
40
2010 2011 2012
45
4
8
5 3
2
2
2
1
1
0
2
4
6
8
10
12
Q1-2012 Q2-2012 Q3-2012 Q4-2012
Exploration wells
Water injection wells
Wells in previously
undrilled fault block
Production wells
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Lithuania High value production with unconventional upside
3 licences, Gargzdai, Rietavasand Raiseiniai
Gargzdai in production
Large potential upside in
unconventional resources
Shale oil and enhanced oil
recovery
Licenses are held through an
operating subsidiary, operated
by Odin
Investment through associated
companies
Gargzdai
25% interest
~140 bopd production (net)
Rietavas
14% interest
Raiseiniai
20% interest
*Assuming USD 100/bo oil price
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Lithuania Gargzdai license
Tethys Oil 25% (Odin Energi, Geonafta)
7 producing fields One exploration well indicates largepotential in shale sections
Vast amount of shale core and otherdata collected in shale section foranalysis
2 undrilled prospects
Reserves (Audited) Mmbo 1P 2P 3P
The Gargzdai license 0.7 1.7 3.0
Reserves as per 31 December 2011
*Mmboe = Miljon barrels of oil equivalent **bopd = barels of oil per day
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Lithuanian oil production
Produced volume, bbl*
15 mmbo produced to date
Current gross production of
~570bopd
42API oil
Oil sold at USD ~1 discount to
Brent
14
*bbl = barel (1barel =19 litres)
0
20
40
60
80
100
120
140
160
180
0
10000
20000
30000
40000
50000
60000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cumulated production (Tethys share)
Bbl per day (Tethys share)
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Lithuania - Rietavas & Raiseniai licenses
Rietavas 1 594 km2
Tethys interest 14%
Partners: Odin Energi, Chevron,
private investors
Work programme fully funded by
Chevron
Exploration primarily shale gas/oil, but
also conventional oil potential
Raiseniai 1 535 km2
Tethys interest: 25%
Partners: Odin Energi, private
investors
Exploration primarily shale gas/oil, but
also conventional oil potential
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Lithuania - Geological setting and petroleum system
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France
Interests in two licences: Attila and Als
Known accumulations of gas and oil
Data and logs from 17 wells Currently no work on-going
Sweden (Gotland)
Proven oil region
40+ prospects identified
Drilling depth required is less than 500 metres
Favourable fiscal terms
Other exploration assets
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Q4 Highlights
Record gross production from Oman of 399 625 barrels corresponding to 4 344
barrels per day in Q4
Field development plan Block 4 & 4 approved in December. License extended until
2040.
Farmout of Lithuanian license Rietavas to Chevron. Fully funded workprogram.
18
MUSD 2 remaining of Mitsuis cost
carry in 2013
8 wells drilled on Blocks 3 and 4 in
Oman
80% success rate on drillings in
previously undrilled fault block
discovered 8 new oil bearing blocks in2012
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Outlook
Field Development Plan approved allows long
term development and investment plans (30
years)
Capex for Block 3 & 4 estimated MSEK 300 in
2013, fully funded by cash flow
Continued drilling with 2 rigs: focus on increasing
reserves with exploration also on Block 4
Using knowledge and experiences gained from
existing projects in continued exploration
Q1 Oman production estimated to 4000 - 5000
bopd (before government take and taxes)
Comprehensive work program in Lithuania to
begin shortly - fully funded by Chevron
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FINANCIALS
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Production (barrels)
Revenue (MSEK)
Average achieved oil price
(USD/barrel)
EBITDA(MSEK)
Result for the period (MSEK)
Operating cash flow (MSEK)
Fourth Quarter 2012
400 324
170
112
193
145
204
Financial highlights Q4 2012
21
Year 2012
1 345 854
584
110
509
314
518
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Result overview
22
Net sales of oil and gas
MSEK 584
Net profit from associate
MSEK 49
Operating result
MSEK 336
Write off oil and gas properties
MSEK 118
Operating expenses
MSEK 96
Depreciation of oil and gas properties
MSEK 55
Administrative expenses MSEK 29
Revenues Operating result
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Oman crude oil sales
Sold volume, bbl Revenues from oil sales, tsek
23
69 574
195 422184 994
169 303
225 518
0
50 000
100 000
150 000
200 000
250 000
Q4-2011 Q1-2012 Q2-2012 Q3-2012 Q4-2012
49 839
144 710153 768
115 783
169 773
0
50 000
100 000
150 000
200 000
Q4-2011 Q1-2012 Q2-2012 Q3-2012 Q4-2012
h l d i bl d
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Tethys sale vs Brent and Omani blend
24
80
90
100
110
120
130
140
US
Dp
erBarrel
Spot Brent v Omani Blend Futures
BRENT SPOT Omani Blend futures TETHYS OIL SALE PRICE
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0
100
200
300
400
500
600
700
0
20
40
60
80
100
120
140
160
180
Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012
Net sales (lhs) Net sales LTM (rhs)
Net sales
0
100
200
300
400
500
600
0
50
100
150
200
250
Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012
EBITDA (lhs) EBITDA LTM (rhs)
25
Growing sales and profitability
SEKm
EBITDA
SEKm SEKm SEKm
Strong underlying production
Lifting in January 2012 originally scheduled fo december 2011 added sales
of MSEK 38 in Q1 2012
From underlift in Q3 to overlift in Q4
Higher oil price in Q4
Fi i l hi hli ht Q3 2012
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Cash, MSEK
Long term debt, MSEK
Shareholders Equity, MSEK
Investments, MSEK
Financial highlights Q3 2012
26
Of investments SEK 381 million regard payments to Mitsui
Market Cap SEK ~ 2 billion in January 2013
Dec 30, 2012
248
417
860
875
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Very strong underlying cash generation
Cash flow from operations have been growing rapidly in conjunction withcommenced production in Oman
By the end of 2011, Mitsui had carried cost up to the agreed USD 60m
Cost repayment commenced in 2012
MUSD 2 m remains to be paid as at 30 Dec 2012 (contingent liability)
Operating cash flow before working capital changes
0
50
100
150
200
250
300
350400
450
500
0
20
40
60
80
100
120
140
160
Q4 2011 Q1 2012 Q2 2012 Q3 2011 Q4 2012
Cash flow from operations before working capital changes (lhs)
Cash flow from operations before working capital changes LTM (rhs)
Investments
0
100
200
300
400
500
600
700800
900
1 000
0
50
100
150
200
250
300
Q4 2011 Q1 2012 Q2 2012 Q3 2011 Q4 2012
Investments in oil and gas properties (lhs) Cost repayment (lhs)
Investments LTM (rhs)
SEKm SEKm SEKm SEKm
Revenue split maximum cost recovery
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Revenue split - maximum cost recovery
28
1 bbl
100$
40 $
48$40+12
=52$
Maximum Cost
recovery 40%
State of Oman
Joint Venture
Block 3 & 4
60$
Revenue split
20% 80%
10:40$26$15:60$
Tethys Oil
30%
CCED
50%
Mitsui
20%
Fi i l
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MSEK (unless stated) 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 2012Net sales of oil and gas 50 145 154 116 170 584
Operating result 44 109 -4 62 152 336
EBITDA 45 120 78 193 509
Result for the period 44 108 15 46 145 314
Earnings per share, SEK 1,36 3,31 0,46 1,35 4,07 9,11
Cash and cash
equivalents 93 68 44 323 248 248
Investments 36 210 232 151 280 875
Financials
Ownership and share price development
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Ownership and share price development
Shareholders Share price development
30
0
10
20
30
40
50
60
70
80
Management and Board of Directors currentlyhold 17% of the share capital
Market capitalisation as of Jan 2013 of ~ SEK2 billion
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